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U.S. Firms Shuttering 401(K) Matching Programs

Thursday, May 2, 2013 - 6:08 PM
A survey from Jericho, N.Y.-based American Investment Planners notes that the number of employer 401(k) matching programs has decreased by 7%, leaving more Americans to fend for themselves in meeting post-retirement financial goals.

AIP’s 401(k) Performance Survey, released April 30, says 13,811 U.S. companies stopped offering 401(k) matching programs in 2010, about 5% of all U.S. companies. Another 2% cut 401(k) matching programs in 2011.

Overall, 42% of U.S. companies now don’t offer 401(k) plan matching for their workers.

That’s a trend financial industry professionals say will continue, given the soft economy.

U.S. Firms Shuttering 401(k) Matching Programs | Home | Get the best rates on mortgage, home equity loans, CD, money markets and checking accounts | BankingMyWay

The solution as pointed out in the article: "Pouring more cash — scarce as it is — into individual retirement accounts or annuities." This will entail spending less which will of course extend the "soft economy". Looks like ZIRP and QE forever, as we are are faced with a 'dog chasing it's own tail' scenario.
5
ShorebreakShorebreak2,613 posts since
Apr 6, 2010
Rep Points: 14,167
1. Thursday, May 2, 2013 - 7:06 PM
It (employers' 401K contribution) is too good to last long.  We all know to take advantage of 401K or IRA for tax purposes.  But the real challenge is how to invest such fund prudently and profitably.  Most that made to the 401K "station" lost money to the turbulent stock market over the years.
7
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
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